Author(s): Amina Al-Mansouri
Econometrics in finance applies statistical and mathematical methods to financial data to understand risk, forecast returns, and optimize investment decisions. This paper explores key econometric models, such as time series analysis, regression models, and volatility modeling, and their applications in financial risk management, portfolio allocation, and forecasting market trends. By integrating econometric techniques with financial theory, organizations can make data-driven investment decisions, reduce uncertainty, and enhance overall financial performance. The study highlights the importance of accurate modeling, empirical analysis, and on-going validation of econometric models in dynamic financial markets.